Splunk closed the most recent trading day at $105.25, moving +0.86% from the previous trading session. This change outpaced the S&P 500's 0.45% gain on the day. At the same time, the Dow added 0.8%, and the tech-heavy Nasdaq gained 1.99%.
Coming into today, shares of the maker of software that helps companies collect and analyze internal data had gained 5.1% in the past month. In that same time, the Computer and Technology sector gained 3.21%, while the S&P 500 gained 4.25%.
Wall Street will be looking for positivity from Splunk as it approaches its next earnings report date. On that day, Splunk is projected to report earnings of $0.40 per share, which would represent year-over-year growth of 344.44%. Our most recent consensus estimate is calling for quarterly revenue of $887.82 million, up 11.15% from the year-ago period.
SPLK's full-year Zacks Consensus Estimates are calling for earnings of $3.10 per share and revenue of $3.9 billion. These results would represent year-over-year changes of +15.24% and +6.77%, respectively.
Any recent changes to analyst estimates for Splunk should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Splunk currently has a Zacks Rank of #3 (Hold).
Investors should also note Splunk's current valuation metrics, including its Forward P/E ratio of 33.64. Its industry sports an average Forward P/E of 40.81, so we one might conclude that Splunk is trading at a discount comparatively.
Also, we should mention that SPLK has a PEG ratio of 1.36. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Internet - Software was holding an average PEG ratio of 1.77 at yesterday's closing price.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 92, which puts it in the top 37% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
Image: Bigstock
Splunk (SPLK) Outpaces Stock Market Gains: What You Should Know
Splunk closed the most recent trading day at $105.25, moving +0.86% from the previous trading session. This change outpaced the S&P 500's 0.45% gain on the day. At the same time, the Dow added 0.8%, and the tech-heavy Nasdaq gained 1.99%.
Coming into today, shares of the maker of software that helps companies collect and analyze internal data had gained 5.1% in the past month. In that same time, the Computer and Technology sector gained 3.21%, while the S&P 500 gained 4.25%.
Wall Street will be looking for positivity from Splunk as it approaches its next earnings report date. On that day, Splunk is projected to report earnings of $0.40 per share, which would represent year-over-year growth of 344.44%. Our most recent consensus estimate is calling for quarterly revenue of $887.82 million, up 11.15% from the year-ago period.
SPLK's full-year Zacks Consensus Estimates are calling for earnings of $3.10 per share and revenue of $3.9 billion. These results would represent year-over-year changes of +15.24% and +6.77%, respectively.
Any recent changes to analyst estimates for Splunk should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Splunk currently has a Zacks Rank of #3 (Hold).
Investors should also note Splunk's current valuation metrics, including its Forward P/E ratio of 33.64. Its industry sports an average Forward P/E of 40.81, so we one might conclude that Splunk is trading at a discount comparatively.
Also, we should mention that SPLK has a PEG ratio of 1.36. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Internet - Software was holding an average PEG ratio of 1.77 at yesterday's closing price.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 92, which puts it in the top 37% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.